May 25, 2011 / 9:36 PM / 6 years ago

UPDATE 1-Fairborne Energy Q1 profit rises; output view weak

* Q1 EPS C$0.31 vs C$0.11 last yr

* Petroleum and nat gas rev down 23 pct (Follows alerts)

May 25 (Reuters) - Oil and gas explorer Fairborne Energy Ltd’s profit nearly tripled but the company expects second-quarter output to drop at least 14 percent, hit by a gas plant outage.

The company expects second-quarter production to average 13,300-13,600 barrels of oil equivalent per day (boe/d), from 15,486 boe/d last year.

The drop is mainly expected because of an outage in March in its property in Marlboro, Alberta and as it divested natural gas properties earlier this year.

Wet conditions in Manitoba and southeast Saskatchewan has restricted output at the company’s Sinclair property from April. Its impact on the second-quarter production is yet to be determined, Fairborne Energy said in a statement.

The company expects third-quarter production to average 15,000-15,500 boe/d, compared with 15,503 boe/d last year.

Fairborne Energy also forecast fourth-quarter production of 16,000-16,500 boe/d, from 16,010 boe/d, a year ago.

January-March profit rose to C$32.6 million, or 31 Canadian cents a share, from C$11.1 million, or 11 Canadian cents, a share last year. Production during the quarter rose 4 percent.

However, petroleum and natural gas revenue was down 23 percent to C$48.5 million.

The company, which sold its natural gas assets in the Canadian province of north and west central Alberta in February, said it will continue to focus on light oil and liquids rich natural gas projects for the remainder of 2011.

Shares of the company closed at C$4.74 on Wednesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Joyjeet Das)

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